Verizon Communications

Verizon Communications Inc. is an American multinational telecommunications conglomerate. The official headquarters are in New York City.

The company provides voice, data and video services and solutions on its networks and platforms.

Verizon generated revenues of $128.3 billion in 2020. It began trading on the New York Stock Exchange (NYSE) under the VZ symbol in July 2000, and started trading on the NASDAQ exchange under the same symbol on March 10, 2010.

In 2020, Verizon Communications celebrated 20 years as one of the world’s leading providers of technology, communications, information and entertainment products and services.

The History of Verizon Communications

Verizon Communications Inc. was formed on June 30, 2000 with the merger of Bell Atlantic Corp. and GTE Corp.

This is one of the largest mergers in U.S. business history.

Before the merger, GTE was one of the world’s largest telecommunications companies, with revenues of more than $25 billion in 1999, more than 7.1 million wireless customers and 72.5 million potential wireless customers.

Bell Atlantic was even bigger than GTE, with 1999 revenues of more than $33 billion. It served 22 million households and more than 2 million business customers.

The aim of the merger was to create a company with the scale and scope to compete as one of the telecommunications industry’s top-tier companies.

The Beginnings of Verizon Wireless

Bell Atlantic and London-based Vodafone AirTouch Plc announced in 1999 that they had agreed to create a new wireless business consisting of Bell Atlantic’s and Vodafone’s US wireless assets.

The new “Verizon” brand was launched on April 3, 2000, and the wireless joint venture began to operate as Verizon Wireless on April 4. GTE’s wireless operations became part of Verizon Wireless, creating the country’s largest wireless company. Verizon became the majority owner (55%) of Verizon Wireless, with management control of the joint venture.

Verizon Communications was added to the Dow Jones Industrial Average

In 2004, the Dow Jones Industrial Average added Verizon Communications to its stock market index.

With the acquisition of MCI Inc., in 2006, Verizon is also a leading provider of advanced communications and information technology solutions to large-business and government customers worldwide.

The addition of MCI gave Verizon Communications access to MCI’s million corporate clients and international holdings, expanding Verizon’s presence into global markets.

In early 2009, Verizon Wireless purchased wireless carrier Alltel for $28.1 billion and became the largest wireless service provider in the U.S. The acquisition included 13 million customers, which allowed Verizon Wireless to exceed AT&T in customer numbers and reach new markets in rural areas.

In 2015, Verizon expanded into content ownership with the acquisition of AOL Inc., and acquired Yahoo two years later. Verizon was beginning the next chapter of its history, aiming to become the #1 global media technology company for creators, advertisers and consumers on a mobile-first network platform.

Verizon focuses on delivering the digital world to customers

Verizon’s business focus is to deliver the promise of the digital world to customers.

Verizon employed 177,700 staff and generated nearly $132 billion revenue in 2015, ranking #15 in the Fortune 500.

With more than 112 million retail connections worldwide, the company operates America’s most reliable wireless network.

Verizon provides communications and entertainment services through America’s most advanced fibre-optic network, and delivers integrated business solutions to customers in more than 140 countries.

Verizon invested nearly $35 billion to upgrade and expand its technology infrastructure in 2014 and 2015. The company’s strong cash flow has allowed them to invest in growth areas such as broadband and wireless.

Verizon invested more than $110 billion in wireless networks

In 2015, Verizon invested over $110 billion in wireless networks, in addition to major spectrum purchases.

Verizon Wireless expanded to many rural markets in 2008 by buying Rural Cellular Corp. for $2.7 billion in cash and assumed debt. It also bought Alltel from Atlantis Holdings LLC in 2009, expanding the company’s network coverage to nearly the entire American population.

From 2013 to 2015, Verizon invested $9.9 billion, $0.4 billion and $0.6 billion, respectively, in acquisitions of wireless licences.

Verizon invested $9.4 billion in 2008 for a nationwide spectrum footprint, and 102 spectrum licences for individual markets around the United States in the FCC’s 700 MHz auction. Using this spectrum, in 2010 Verizon launched its 4G LTE mobile broadband network which is the most advanced 4G network in 38 major metropolitan areas covering one-third of all Americans.

Verizon rapidly expanded this network, announcing it would bring 4G LTE network to another 140 markets by the end of 2011. By end of 2015, Verizon’s 4G LTE network covered around 312 million people in the U.S.

Verizon’s largest investment in wireless was without doubt in 2014 when the company completed its acquisition of Vodafone’s 45% indirect interest in Verizon Wireless. The historic transaction, valued at around $130 billion, was one of the largest in business history, and Verizon became the U.S. wireless industry leader in network performance, profitability and cash flow.

Verizon’s wireline network served 9.2 million broadband connections

At the end of 2015, Verizon’s wireline network served 9.2 million broadband connections in 12 states and the District of Columbia.

The company invested more than $25 billion from 2004 to 2015, to set up Verizon’s fibre network, passing 20.5 million premises in the U.S. as of year-end 2015.

Acquisition of AOL and Yahoo

Over the past ten years, Verizon has made several acquisitions to build its portfolio of next-generation communications services.

In 2015, Verizon announced it would acquire AOL Inc. for $50 per share, for a deal valued around $4.4 billion. The following year, Verizon announced it would acquire the core internet business of Yahoo! for $4.83 billion.

On June 13, 2017, Verizon completed its acquisition of Yahoo for $4.48 billion.

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